On January 1, 2022, Gamma Corporation acquired new equipment in exchange for old equipment it had originally acquired in 2019 for $300,000. The book value of the equipment at the time of the exchange was $109,800 and fair value was $130,000. Gamma also paid $220,000 cash in exchange. The list price of the new equipment is $310,000. The exchange has commercial substance. Gamma will record on its 2022 financial statements: New Equipment at $220,000 in the balance sheet and a loss of $40,000 in the income statement New Equipment at $310,000 in the balance sheet and a gain of $20,200 in the income statement New Equipment at $350,000 in the balance sheet and a gain of $20,200 in the income statement New Equipment at $329,800 in the balance sheet and a loss of $40,000 in the income statement